SECTION 206 AB - RETURN FILED WITH DEPARTMNENT THEN HIGHER TDS APPLICABLE OR NOT

Tax queries 367 views 10 replies

Miss Mansi Bhojani

Practicing Chartered Accountant

1736 Points Joined August 2012

An assessee's old tax consultant had filed the return but not verified the return so return is considered as not filed for AY 2023-24. The current AY's return ie AY 2024-25 is filed correctly this year within the due date.

Now the assessee has TDS deductble in AY 2025-26, more than Rs 50,000 and even all the years AY 2023-24 & AY 2024-25 TDS was above Rs 50,000.

So section 206AB is applicable and TDS to be deducted now stands 20% at higher rate because of return not filed for AY 2023-24

Query is, the return for AY 2023-24 is filed now by manually requesting the IT department in APR 2024 by submitting the details at Income TAx department at applicalble ward but no response has yet been received from thier end.

Query :

So can this manual submission can be taken into consideration or TDS will be dedcuted at higher rate?
Return for AY 2024-25 is duly filed on 30.07.2024, that can't be taken into consideration for TDS deduction for AY 2025-26?

Kindly please revert.

Thanks in advance.

Replies (10)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

208967 Points Joined July 2016

Unless the system considered it as (ITR) filed, it is not accounted. You can file it U/s. 119(2)(b) by dondonation request.
Till the system declares it under Non-filers list, the deductors will have to deduct TDS under higher rate. So, file the returns of earlier years under sec. 119(2)(b), then make application for removal of the name from non-filers list.

Miss Mansi Bhojani

Practicing Chartered Accountant

1736 Points Joined August 2012

Thanks for the prompt response Sir.

I have filed an application for condonation of delay with Income Tax department u/s 119(2)b on 16.04.2024 but neither have they reverted nor has the status being updated.

So will have to wait for the reply and status change, correct Sir ?!

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

208967 Points Joined July 2016

If possible, may follow up with Jurisdictional ITO, requesting the need to remove him/her from non filers list.

Till the requwest application is processed, no other alternative.

Miss Mansi Bhojani

Practicing Chartered Accountant

1736 Points Joined August 2012

Okay Sir. Thanks a lot.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

208967 Points Joined July 2016

You are welcome.

Manish

1215 Points Joined June 2021

Now, section 206AB requires timely submission of the last one year's ITR. For AY 2025-26, the ITR for AY 2024-25 has already been filed on time, so section 206AB is not applicable for AY 2025-26.

Miss Mansi Bhojani

Practicing Chartered Accountant

1736 Points Joined August 2012

Thanks a lot for the reply. Yes exactly but then too they have mentioned PAN in specified person.

Manish

1215 Points Joined June 2021

As per this circular (link) by Income Tax Dept. this PAN should have been removed from the list.

Miss Mansi Bhojani

Practicing Chartered Accountant

1736 Points Joined August 2012

I have put up a greviance on e-filing portal regarding the same. Waiting for the response.

Miss Mansi Bhojani

Practicing Chartered Accountant

1736 Points Joined August 2012

The response is that the reporting portal looks for previous year minus one year ie 1 year before previous year of the said FY. So for FY 2024-25 they are looking at 1 year before previous year ie FY 2023-24 is previous year so they will look at FY 2022-23. They are adamant by saying we follow this rule and so as per it for FY 2024-25 they will not look for previous FY 2023-24 but will look at FY 2022-23.